Hume’s Philosophy of Money

Hume’s political economy is grounded in the twin assumptions that people face a natural environment of scarcity and that they lack generosity toward each other. For people to form lasting societies, it was necessary for them to find a way to curtail their selfishness. At a minimum, people had to respect other people’s wealth, agree to engage in just trades, and to mediate exchanges with symbols. As they gradually realized the benefits of abiding by such rules, the foundation for a thriving society developed. This essay explores how Hume theorized the emergence of the conventions of private property, markets, and money, with an emphasis on the latter. I explicate how Hume believed it was possible for humanity to agree to accept symbols in exchange for labor and commodities. The primary reason, Hume argued, people were willing to accept money was because they recognized the inconvenience associated with barter. Money was thus based on a shared economic interest, culture of trust, communicative action, and pursuit of progress.